Cost and Revenue Structures for Micro-Hydro Projects in Nepal

The cost of the MHP is site specific and varies greatly depending on the remoteness of the site and physical features of its major components, namely, civil works (including waterways), generating equipment (turbine, generator, control, protection) and electrical transmission/distribution lines. While the cost of generating equipment in the powerhouse is almost a linear function of its kW size, the cost of civil works further depend upon the gradient of the waterway (intake to powerhouse). Similarly, the cost of electrical line further depends upon the energy density of the load centers. Therefore, unit cost of MHP installations can vary widely from scheme to scheme. Moreover, low cost solutions are often sought for survey/design and construction but such actions might reduce the reliability and increase the O&M cost on the long run.